The Corporate Travel Management Ltd (ASX: CTD) share price was amongst the best performers on the market on Wednesday.
The corporate travel specialist's shares finished the day 3.5% higher at $29.84.
Why did Corporate Travel Management's shares surge higher?
This morning Corporate Travel Management released a presentation ahead of the Morgans conference.
Within the presentation the company provided a trading update and a reminder of its guidance for FY 2019.
Previously, management had provided guidance for underlying EBITDA in the range of $144 million and $150 million, representing growth of between 15% and 20% on FY 2018. This guidance assumed that global client activity would be relatively flat for the year.
Whereas this morning management advised that during the first quarter of FY 2019 its client wins were at record levels. In addition to this, it stated that "Key FX and client activity assumptions are proving favourable to CTD guidance."
Management intends to provide an update on its guidance at its annual general meeting on October 31. I suspect that if trading conditions remain favourable in the run up to the meeting, this guidance will be revised upwards.
Should you invest?
With Corporate Travel Management's shares down over 11% from their 52-week high, I think now could be an opportune time to consider an investment.
As I have mentioned previously, I'm bullish on the company due to its strong long-term growth potential.
You only need to look at its share of the markets it operates in to see how much of a runway for growth it has. As of the end of FY 2018, management estimates that it has only has a 15% share of the ANZ market, a 2% share of the Asia market, and under 1% of both the European and US markets.
Overall, I think this makes it a share to buy and hold along with industry peers Helloworld Travel Ltd (ASX: HLO) and Webjet Limited (ASX: WEB).
